Credit Cards

How Much Do You Have To Spend To Make Chase Sapphire Preferred Worth It

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

People who frequently dine out and travel can benefit greatly from using the Chase Sapphire Preferred® Card, a popular travel rewards credit card. Sapphire Preferred is a great rewards program, but it does come with a $95 annual charge.

  • When using Chase Ultimate Rewards for your next trip, you can earn 5 points (after the $50 annual hotel credit is deducted) for every $1 spent.
  • Spending at qualified restaurants, certain streaming service purchases, and online grocery shopping earns an unlimited 3 points each $1 spent.
  • All other travel-related purchases get 2 points per dollar paid, without limit.
  • Most other purchases get an unlimited 1 point for every $1 spent.

Plus, it offers one of the most generous welcome packages out there: By spending $4,000 in the span of three months, you may earn 60,000 extra points, which can be redeemed for up to $750 in travel expenses through Ultimate Rewards.

The Chase Sapphire Preferred Card’s Highlights

Chase Freedom and its flat-rate sibling, Chase Freedom Unlimited, are Chase’s entry-level cash back rewards credit cards; Sapphire Preferred is a step above from both.

The Chase Sapphire Preferred Card is the entry-level card to the ultra-luxurious Chase Sapphire Reserve Card, which offers a $300 travel credit and free access to more than 1,000 airport lounges around the world in exchange for a $550 annual fee.
What you need to know is shown here.

Bonus for Signing Up

By spending $4,000 in the span of three months, you may earn 60,000 extra points, which can be redeemed for up to $750 in travel expenses through Ultimate Rewards.

Acquiring Benefits

Chase Ultimate Rewards® members can earn 5 points every $1 spent on travel, with the exception of hotel purchases that are eligible for the $50 annual hotel credit.

Spending on qualified eating (including takeout and dining out), certain streaming service, and online grocery purchases earns you 3 points for $1 spent, and there is no cap on how much you may earn.

You can get two points for every dollar you spend on things like airline, hotels, vehicle rentals, and more that aren’t made through Chase Ultimate Rewards. For all other purchases, you can rack up points at a rate of one point for every dollar spent.

Redeeming Prizes

You may cash in your points via the Chase Ultimate Rewards website. General retail purchases, travel purchases, and cash and currency equivalents (statement credits, bank account deposits, and gift cards) are all acceptable methods of redemption.

When redeemed for travel purchases (including airline, hotels, car rentals, and cruises) bought directly via Ultimate Rewards, each point is worth 25% more than its normal value of $0.01. When redeemed for qualifying airfare, hotel stays, and car rentals, 50,000 points are worth $625 rather than the $500 they would be for other expenditures. Your points will never expire so long as your account is active.

Chase is now running a promotion called Pay Yourself Back, in which points may be redeemed for a 25% bonus when used for purchases in certain, ever-changing categories.
Your points are convertible at a rate of 1 point for every 1 mile flown or 1 night stayed in a hotel, independent of the point value of the participating programs. British Airways, United Airlines, Southwest Airlines, Korean Airline, Virgin Atlantic, Hyatt, IHG, and Marriott are just some of the airlines and hotel chains that participate in the frequent flyer programs. 

Depending on what you do with your transferred points, this might provide you an even better return on your investment.

Purchases of Ultimate Rewards Points

Sapphire Preferred cardholders have the potential to earn points at a quicker rate on any purchases made through the Ultimate Rewards system, not only travel purchases.

To clarify, in addition to the standard 1 point per $1 spent with the Sapphire Preferred card, many merchants featured on Ultimate Rewards provide an extra 1 to 5 points per $1 spent (and occasionally more).

Occasionally, Chase may run promotions for Ultimate Rewards that increase the value of points earned or redeemed. For instance, Ultimate Rewards offered a 10% discount on certain gift cards till the end of April 2019. Express, iTunes, and Whole Foods were among the shops that took part.

Bonus Annual Anniversary Points

If you use your credit card regularly and make purchases at a rate of 1 point for $1, you’ll earn bonus points each year equal to 10% of your total spend in points from purchases made with your credit card in the preceding account anniversary year.

Important Fees

The cost is $95 per year. Money exchange costs are free of charge. Cash advances cost $10 plus 5% of the amount borrowed, while balance transfers cost $5 plus 5% of the amount transferred.

Hotel Credit for the Year

Chase Ultimate Rewards members can receive annual automatic statement credits of up to $50 for qualifying hotel purchases.

DoorDash provides a free DashPass.

If you sign up for DashPass, DoorDash’s subscription program for frequent customers, before March 31, 2022, you’ll get a free membership for at least a year. When you spend $12 or more, DashPass will waive the delivery cost and decrease the service price to a flat $2.

Travel Advantages

Cardholders in good standing can take use of a wide variety of travel protection options made available by Sapphire Preferred. They consist of the following:

  • Service that will pay up to $10,000 if your vacation must be canceled or cut short due to events beyond your control.
  • Free Loss and Damage Waiver for Rental Cars
  • Up to $3,000 per person is available for replacement of damaged or missing bags.
  • Life and limb replacement coverage of up to $500,000 in the event of an accident while traveling
  • Assistance in Case of an Emergency While Traveling Available Around the Clock
  • If your flight is delayed by more than 12 hours due to circumstances beyond your control, you may be eligible for up to $500 per ticket in compensation.

Exclusive Events & Experiential Opportunities

The PGA Championship and private dinners with star chefs are just two of the many special events available to Sapphire Preferred cards. Potentially further charges are possible.

Credit Required

Strong credit, preferably exceptional, is required for this card.

Bottom Line

The Chase Sapphire Preferred® Card is a fantastic credit card in many respects. But it’s not a good fit for everyone. Don’t forget that in order to qualify for the incredibly alluring sign-up bonus, you’ll need to make a purchase totaling $4,000 within the first three months after starting your account.

Of all, not everyone can afford to take advantage of the Chase Sapphire Preferred’s sign-up bonus. It’s safe to assume that a large percentage of the U.S. population is ineligible for this card because of their credit scores.

The Chase Sapphire Preferred credit card is likely out of reach while you work on repairing your credit. But that doesn’t mean you can’t put in the effort to earn it in the future. Apply for a secured credit card, or an unsecured card designed for credit-building, for the time being (such as a student credit card). Focus on being frugal and paying bills on time. With continued use, your credit limit might be increased. Also, keep an eye on your credit report frequently to monitor your improvement.

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